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Obama raised the issue near the end of their bilateral meeting stressing the importance to western security that Nato maintains defence spending in face of threats facing the west in the Middle East, north Africa and Russia.
The DMO purchases and maintains defence equipment.
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Now it will be harder still to maintain defence spending.
Clearly, Israel must maintain defence forces in case it is attacked by traditional armies.
While Russia is investing some $700bn in a new military by 2020, western Europe continues to struggle to maintain defence budgets of just 2% of GDP.
Analysis What is missing is a commitment to maintaining defence spending at 2% of GDP, the government pledge made at last year's Nato summit.
Britain will maintain defence spending at Nato's target for member states of 2 per cent of gross domestic product for the next decade.
Another suggestion will be a commitment to maintain defence spending at about 2% of GDP, roughly the same as in Britain.
The news that the UK will maintain defence spending of at least 2% of GDP, not only this year, but for every year of the current parliament, was announced by Osborne during the latest budget on Wednesday.
As much as Conservative backbenchers would love its leadership to do so, there surely won't be a pledge to maintain defence spending at a minimum 2 per cent of national income, the goal for every member of Nato.
But it also promises to maintain defence spending at the 2% of GDP demanded by NATO, an issue on which the Tory-led coalition government has been accused of backsliding.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com